It was only 12 years ago that the British army handed over the keys to 26 acres of barracks that are, for a big chunk of the population of Derry, a potent symbol of the Troubles. But on Friday and Saturday night, it was a place of enjoyment and excitement – across Ebrington barracks came the deafening sound of rock music and cheers.

The event was a performance by Hofesh Shechter and his contemporary dance group, Political Mother, one of the early highlights of events that make up Derry's stint as UK capital of culture.

Contemporary dance is a tough sell. Michael Bradley, bass player with the Undertones, who hail from the city, and now a producer with Radio Foyle, had not yet seen it but said his 16-year-old son was there on Friday. "He loved it," said Bradley. "He even used the words 'interpretive dance'."

It was particularly special because all 20 musicians for the show were recruited locally, including 18-year-old Adam McCort, whose bass was in a wall of guitars. "I'm still trying to get over it," he said the morning after. He has noticed a palpable change in Derry because of the city of culture tag.

"Overall, there is a general buzz in the city. It is brilliant because Derry's so small and there's so much trying to happen but they never really get the funding or publicity or advertising. It's only March and everybody's loving it already and there's so much more to happen in the next nine months."

The audience response was overwhelmingly positive – "completely beyond my expectations", said Shechter. "The fact that some of their boys and girls were on stage made the audience feel they owned the show more."

The choreographer knows Derry quite well now and said he could feel a familiar tension in the city when he first arrived. "I know that feeling. I was born in Jerusalem and as a child you sort of grow in to that tension even though you don't understand what it is or it means. Nobody sits you down and explains it. I hope the piece is something people can relate to."

The Shechter work was performed in a new performance space called The Venue. Around the corner, two late Victorian army barracks are being converted into gallery space to play host to the Turner prize later this year, the first time it has been held outside England. The former parade ground has already been used for a diverse range of events including a successful world-record attempt – a performance of Annie entering the record books for the largest co-ordinated song and dance routine.

More than £13m is being spent on a dizzying programme of arts events that aims to get to get as many residents participating as possible and get more visitors to Derry, perhaps changing people's perception of it.

This month there will be visits from the London Symphony Orchestra and the Royal Ballet, while in May there is Radio 1's Big Weekend and in August the Fleadh Cheoil na hÉireann, the world's biggest celebration of Irish culture, comes north of the border for the first time in its 60-year history.

It has unquestionably been a battle for hearts and minds, not least because it is the "UK" capital of culture, while a majority of residents want to be in the Republic and all the branding is for Derry-Londonderry.

There was also the cost. Bradley said: "People were cynical … no, sceptical. No, cynical. But since January people have been great. They love it. They complain they can't get tickets."

Record producer Frank Gallagher, another local boy, said the Derry/ Londonderry and UK issues weren't important. "It is about little victories. It is about raising our expectations. It is about thinking we shouldn't have to drive to Dublin to see Bruce Springsteen. It is about asking why should I not have the same artistic palette as someone from Bristol."

Executive programmer Graeme Farrow said they knew Shechter's performance would work in what is a strikingly young city – 40% of the population are aged under 25 – "because it is about as good an introduction to contemporary dance that you can get for a teenager".

Getting people involved is a big part of the year. "We want people to be proud of what went on and know that they participated in it and owned it. We want a sense of joyous celebration."

The idea of a UK city of culture stems from the phenomenal success of Liverpool's stint as European city of culture in 2008 – it led to then culture secretary Andy Burnham proposing doing something on a regular basis. Derry beat off competition from cities including Birmingham and Sheffield to win the title, largely because it seemed to want it more and probably had most to gain.

It will be fought in a spirit of friendly competition, although Southend's Tory MP David Amess could have chosen his words better when he last week described some rivals as "absolute dumps", many of which "wouldn't know culture if it was put in front of them".

It has been trickier for a place such as Derry, which continues to be in the headlines for the wrong reasons – only last week police thwarted what could have been a terrorist attack involving four primed mortar bombs. The success of city of culture status will, of course, also be measured in how much income it generates for the city, how many tourists it brings and how many jobs it creates.

But then there is the more difficult to measure effect on individuals, said Farrow. "Ask the people in the Hofesh Shechter show in five years. It is about individuals on a human level."